Question

A few years ago, it cost millions of dollars to outfit a store the size of a 7-Eleven with cameras and a high-performance computer server for cashierless technology. Now, it costs anywhere from $100,000 to $300,000 to outfit the same size store, depending on how many cameras and the type of hardware used. Based on this information, how quickly will cashierless technology diffuse?

Answer 1

The cashierless store is a new concept in the retail market which is set to fast track retail services. It offers a smooth shopping experience to the consumers by addressing the pain points of the consumers. They are changing the way people shop.

As good as it is for the consumer, its even better for the owners. They can now increase their sales by speeding up the processes of the checkout system. The costs of paying an employee is now replaced with a one time cost of machines which is cheaper in the long run. These machines work faster and more efficient. All of this is based on an application which customizes the shopping experience according to the consumer by using their data.

Competition in the country is heating up. More and more consumers, especially the younger ones, would infact pay more to use the cashierless check out system. This is making companies invest in this technologies. Amazon has already opened several of its Amazon Go stores which uses similar concept. Startups have recieved millions of dollars in fundings to work on this technology. The technology has been spreading and many big retailers are jumping on this train.

However, many states are pushing on a ban on this technology saying it may lead to job losses. Many cashierless stores are also cashless, which means they only accept credit payments. States are pushing for a ban on this because it discriminates low wage group workers who may not use this kind of payment.

But because of the great expansion of Amazon go and other retailers investing in this, the technology looks promising and is here to stay. As technology improves, these machines get more effecient and cheaper.